Would your insurance cover the cost of rebuilding your house if it was destroyed by fire or natural disaster? Just because you see "replacement" in your policy, you can’t be sure the insurance company will pay to replace everything and cover the costs. Most policies cover replacement cost for damage to the structure. But sometimes rebuilding costs can push above homeowners policy limits, leaving you without enough money to cover the bill.
To protect against such a situation, you need guaranteed replacement coverage. Guaranteed replacement coverage pays the full cost of replacing or repairing a damaged or destroyed home, even if it is above the policy limit.
"Two weeks after the fire, they got $785,000 for rebuilding. The likely real cost: $1.35 million."
Read the true story about a family who's home was destroyed in the 2007 California wildfires, featured in the January 2008 issue of Money magazine. This story reiterates the importance replacement value has in your homeowners insurance policy.
Talk to your agent to find out if your current homeowner’s policy provides 100% complete Replacement Cost Coverage on your home and contents.
Wisconsin residents, R&R offers carriers that have no cap on the replacement cost. Contact Dan Wolfgram for more information today!